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HomeMy WebLinkAboutVI (D1) Adoption of Resolution No. 97-08, authorizing Condemnation of Logan Family Trust Property Agenda 8-19-97 Item VI D 1 RESOLUTION NO. 97-08 A RESOLUTION OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE ACQUISITION BY EMINENT DOMAIN OF PROPERTY, INCLUDING BUT NOT LIMITED TO FEE TITLE, LOCATED AT 370 ENTERPRISE STREET; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Ocoee desires to relocate the City' s Public Works Facility to meet the current and future needs of the City of Ocoee; and WHEREAS, the City Commission of the City of Ocoee has the authority to adopt this Resolution pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes; and WHEREAS, the City Commission of the City of Ocoee finds a public need and necessity exists to acquire, by eminent domain, the property and its associated improvements described in Exhibit "A" attached hereto and incorporated herein by reference for the purpose of relocating and expanding the City' s Public Works Facility; and WHEREAS, the City Commission of the City of Ocoee finds that the acquisition of the said land is necessary for the provision of public works within Ocoee, and that the acquisition of the said land therein otherwise to be in the public interest of the municipality and the people thereof; and WHEREAS, the interest to be acquired, fee simple title is more particularly described in Exhibit "A" hereto; and WHEREAS, the City Commission of the City of Ocoee has directed the property described in Exhibit "A" hereto to be surveyed and will locate its line of taking in accordance with Section 73 . 021 (6) , Florida Statutes (1996) ; and WHEREAS, all conditions precedent to the exercise of the power of eminent domain have been satisfied by the City of Ocoee; and WHEREAS, if any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto; and WHEREAS, this Resolution shall become effective immediately upon passage and adoption, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: Section 1. That the acquisition, by eminent domain, of the interest indicated in the following parcel for the purpose set forth above has been found to be, and is found and determined to be, necessary, in the best interest of the public and for a public use and purpose, the legal description of said parcel being more particularly described in Exhibit "A" attached hereto and by this reference made a part hereof: OWNER: BLANCHE E. LOGAN, as Trustee of the Logan Family Trust INTEREST: FEE SIMPLE BE IT FURTHER RESOLVED that the appropriate officers, employees and attorneys of the City of Ocoee are authorized to 2 proceed forthwith to institute such necessary and proper actions and proceedings and to comply with all legal requirements as may be necessary or proper for the acquisition by eminent domain of the fee simple absolute title in the property described in attached Exhibit "A" , the specific interest to be acquired therein being further set forth above and in the attached Exhibit "A. " PASSED AND ADOPTED this day of August 1997 . APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA. APPROVED AS TO FORM AND LEGALITY this day of August 1997 . FOLEY & LARDNER APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING By: HELD ON AUGUST , 1997 City Attorney UNDER AGENDA ITEM NO. 3 EXHIBIT A OWNER: BLANCHE E. LOGAN, as Trustee of the Logan Family Trust INTEREST: FEE SIMPLE LEGAL DESCRIPTION LOT K, WEST ORANGE INDUSTRIAL PARK UNIT TWO, according to the plat thereof as recorded in Plat Book 5, Pages 84 and 85, Public Records of Orange County, Florida OTHER INTERESTS: All interests required under Section 73 . 021 (4) , Florida Statutes. C:\WPSt\DOCS\MAD\OCOEE 019-WOOD.RES 18/13/47118 EOMI MAD4r 4 LAND ACQUISITION AGREEMENT THIS LAND ACQUISITION AGREEMENT (the "Agreement") is made and entered into this day of August, 1997, by and between BLANCHE E. LOGAN, as Trustee of the Logan Family Trust, whose address is 1007 Hickory Hill Road, Ft. Plain, New York 13339 (hereinafter referred to as "Logan") and the CITY OF OCOEE, a Florida municipal corporation, whose address is 150 North Lakeshore Drive, Ocoee, Florida 32761 (hereinafter referred to as "the City"). WITNESSETH: WHEREAS, Logan is the owner of fee simple title to certain real property improved with a 5,412 square foot office/warehouse building and located in the City of Ocoee, Orange County, Florida, as more particularly described in Exhibit "A" attached hereto and by this reference made a part hereof (the "Property"); and WHEREAS, the City is a Florida municipal corporation which is authorized to exercise condemnation powers pursuant to Chapter 166, Florida Statutes; and WHEREAS, the City has a public need and necessity to relocate its existing Public Works Facility to the Property and in connection therewith needs to acquire from Logan fee simple title to the Property and its improvements for the relocation and expansion of the City's Public Works Facility; and WHEREAS, the City has advised Logan that it intends to use its power of eminent domain to condemn its required interests in the Property; and WHEREAS, the City's appraiser has reached a conclusion of value of $358,000.00 for the Property; and WHEREAS, Logan has advised the City that it will not contest the eminent domain proceeding provided the City pay Logan the sum of$375,000.00 in complete satisfaction for the taking of the Property; and NOW, THEREFORE, in consideration of the promises and other good and valuable considerations exchanged between the parties hereto, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agrees as follows: 1. The above recitals are true and correct and are incorporated herein by reference. 2. Upon execution of this Agreement by both parties, the City will initiate an eminent domain proceeding to acquire the Property. This action will be prosecuted pursuant to Chapter 74, Florida Statutes. Logan agrees to waive service of process by a sheriff. 3. As its good faith estimate of value, the City will file a Declaration of Taking in the amount of$375,000.00 and will deposit that amount in the Court Registry within twenty (20) days of the entry of the Order of Taking. 4. Logan agrees not to challenge the City's public need and necessity for the taking nor seek compensation for the value of the Property taken above the $375,000.00 amount set forth in Paragraph 3 above. 5. Each party shall bear its own attorneys' fees and costs in connection with this Agreement and the eminent domain action to be filed by the City. Logan agrees not to seek reimbursement from the City for any costs incurred by Logan for appraisals, attorneys, any expert witnesses or consultants, environmental clean-up, and other matters. 6. Logan acknowledges that the funds deposited in the Court Registry may be subject to apportionment by persons or entities claiming an interest in the Property and agrees that any - 2 - apportionment proceedings related to the entitlement to funds deposited by the City shall be the responsibility of Logan. 7. Logan shall be responsible for any and all claims which may be made by Century 21 West Properties and/or Dick Trail ("the Broker") for a brokerage commission in connection with the acquisition and condemnation of the Property by the City. It is agreed that the City shall have no obligation whatsoever to the Broker. Logan and the City represent to each other that, except for the Broker, they are not aware of any person or entity which would be entitled to a commission, compensation, or brokerage fee in connection with the acquisition and condemnation of the Property by the City. Logan agrees to indemnify and hold the City harmless from any claim for a commission, fees or other compensation which may be claimed to be due through Logan or pursuant to the acts of Logan or Logan's representatives. Additionally, Logan covenants and agrees to indemnify the City for damages, court costs and reasonable attorneys' fees and paralegal fees, at both at the trial and appellate levels, incurred as a result of any such claim. 8. The City shall have the right to personally or through agents, employees and independent contractors, to enter upon the Property for the purposes of, at its own expense, inspecting the Property, obtaining surveys, making soil tests, test borings and conducting such other investigations of the Property as the City deems appropriate. To the extent permitted by law, the City will indemnify and hold Logan harmless from and against all loss, liability, costs, claims, demands, damages, actions, causes of action, suits and expenses arising out of, related to or caused by the City, its agents, employees and independent contractors in the exercise of any of the City's rights under this paragraph. - 3 - 9. Within thirty (30) days from the date of the filing of the condemnation action by the City, Logan will execute and deliver, in escrow, to Foley & Lardner a complete assignment of all of her rights and privileges with respect to the Property under the Florida Department of Environmental Protection's Florida Petroleum Liability Insurance and Restoration Program (FDLIRP). Such assignment shall be in a form acceptable to the City. Further, such assignment shall be held in escrow by Foley & Lardner who shall be authorized to release the assignment to the City at such time as the City deposits the sum of $375,000.00 into the Court Registry as provided in Paragraph 3 hereof. Within such 30-day time frame, Logan will provide the City with satisfactory documentation that the FDLIRP deductible amount of $10,000.00 has been satisfied. Further, Logan will be responsible to pay in full Universal Engineering Services, Inc. ("Universal") for all work performed in connection with the Property which is not paid for by the State of Florida under the FDLIRP and, in this regard, shall deliver to the City a release from Universal of any claim of lien which may be held or claimed by Universal against the Property, such release to be provided within thirty (30) days from the date of filing of the eminent domain proceeding. 10. The City has disclosed to Logan that it intends to obtain owner's title insurance with respect to the title to the Property to be obtained by the City in the eminent domain proceeding. Logan agrees to pay to the City the cost of such owner's title insurance which is $1,950.00 based upon the minimum promulgated rate. This amount will be paid by Logan to the City contemporaneous with her receipt of any portion of the funds paid by the City into the Court Registry as provided in Paragraph 3 hereof. - 4 - 11. The City will obtain a boundary survey of the Property at the City's sole cost and expense, and may elect to obtain a Phase I Environmental Assessment, also at the City's expense. 12. Within five (5) days from the date of this Agreement, Logan shall provide the City with a copy of the Logan Family Trust which may be recorded by the City if required in order to obtain title insurance. 13. Notwithstanding any provision contained in this Agreement to the contrary, the City may, in its sole and absolute discretion, elect at any time prior to the issuance of the Order of Taking to dismiss the eminent domain proceedings. In the event the City so elects to dismiss the eminent domain proceedings, then neither party shall have any claim against the other for any costs and expenses, including but not limited to, attorneys' fees, appraisal fees, expert witness fees, and brokerage fees incurred in connection with this Agreement and the proposed condemnation and/or acquisition of the Property by the City. 14. Logan agrees, upon request of the City, to execute and deliver to the City such documents and instruments in form and substance reasonably necessary to confirm and/or effectuate the obligations of Logan under this Agreement and the consummation of the acquisition of the Property by the City. 15. This Agreement shall survive the acquisition of the Property by the City. 16. This Agreement shall be enforceable by an action for specific performance. In the event that either party finds it necessary to bring such an action against the other party to enforce this Agreement or because of a breach thereof by the other party, the prevailing party shall be entitled to recover from the other party its reasonable attorneys' fees, paralegal fees and - 5 - costs incurred in connection therewith, at both trial and appellate levels, including bankruptcy proceedings. 17. This Agreement embodies and constitutes the entire understandings of Logan and the City with respect to the Property and all prior and contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement. This Agreement may only be waived, modified, amended, discharged or terminated by a written agreement between Logan and the City. 18. This Agreement shall be construed and interpreted in accordance with the laws of the State of Florida. 19. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective legal representatives, successors, heirs and assigns. 20. Time is of the essence for this Agreement and in the performance of all conditions, covenants, requirements, obligations and warranties to be performed or satisfied by the parties hereto. 21. The Effective Date of this Agreement shall be the date that it is executed by the City and such date shall be inserted on the front page of this Agreement. - 6 - IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, to become effective as of the date and year first above written. Signed, sealed and delivered SELLER: in prese ce of: %/9 ? BLANCHE E. LOG , ally �.� /L-'` yC jc L and as Trustee of the Logan Fa Trust Executed on: 6( y , 1997 CITY: CITY OF OCOEE, a Florida municipal corporation By: S. Scott Vandergrift, Mayor ATTEST: By: Jean Grafton, City Clerk [AFFIX SEAL] For use and reliance only by Executed on: , 1997 the City of Ocoee, Florida. Approved as to form and legality this _ day of , 1997. FOLEY & LARDNER APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1997 By: UNDER AGENDA ITEM NO. City Attorney C:mP5I\DOGS\OCOEE\LANDACQS.AGM 18/4/97I 18W015I PER:dp - 7 - EXHIBIT A LEGAL DESCRIPTION LOT K, WEST ORANGE INDUSTRIAL PARK UNIT TWO, according to the plat thereof as recorded in Plat Book 5 , Pages 84 and 85 , Public Records of Orange County, Florida ' OLEY & LARDNEF ATTOR NEYS AT LAW CHICAGO POST OFFICE BOX 2193 SAN DIEGO JACKSONVILLE ORLANDO, FLORIDA 32802-2193 SAN FRANCISCO LOS ANGELES 111 NORTH ORANGE AVENUE, SUITE 1800 TALLAHASSEE MADISON ORLANDO, FLORIDA 32801-2386 TAMPA MILWAUKEE TELEPHONE(407)423-7656 WASHINGTON D.C. SACRAMENTO FACSIMILE(407)648-1743 WEST PALM BEACH WRITER'S DIRECT LINE MEMORANDUM TO: Ellis Shapiro, Richard Corwin, Jim Shim THROUGH: Paul E. Rosenthal, Esq., City Attorney FROM: Thomas K. Maurer 1 DATE: June 4, 1997 RE: Proposed Public Works Facility - 307 Enterprise Street - Environmental I have reviewed the environmental reports and documents provided by the City regarding the property located at 307 Enterprise Street. For the reasons set forth below, I would recommend that the City obtain an independent Phase I Environmental Assessment. The existing petroleum contamination is eligible for funding by the Florida Department of Environmental Protection (FDEP). I would recommend that the Buyer's environmental consultant be contacted in order to determine whether or not sufficient investigation to the extent of contamination has been performed in order to provide the cost estimate for total clean-up of the contamination. The City may want to consider requiring an escrow or other protection from the Buyer to cover any costs which may not be covered by the FDEP program. More detailed discussion of these issues follows: GENERAL ENVIRONMENTAL ASSESSMENT It is the usual and customary practice to perform a Phase I Environmental Assessment prior to the purchase of any commercial property. There are defenses to liability under both Florida and federal law which will not apply unless a buyer can demonstrate that they have performed a diligent review of the environmental condition of the property. The usual way to accomplish this review is to perform a Phase I Environmental Assessment which meets ASTM standards. Although the Seller had such an assessment performed in 1994, a buyer would not typically rely on a report prepared for another party, nor a report which is three years old. While it is unlikely that any additional environmental conditions will be uncovered, it would be appropriate to perform an environmental assessment in order to make sure that no new conditions of environmental concern exist and to preserve the City's right to the innocent ESTABLISHED 1 8 4 2 A MEMBER OF GLOBALEX WITH MEMBER OFFICES IN BERLIN, BRUSSELS,DRESDEN,FRANKFURT,LONDON, PARIS,SINGAPORE,STUTTGART AND TAIPEI purchaser defenses under the environmental statutes. The cost of a Phase I Environmental Assessment is in the neighborhood of $2,000.00. PETROLEUM CONTAMINATION Petroleum contamination has been identified at the facility. This contamination has been determined eligible for funding from the Inland Protection Trust Fund (IPTF) administered by FDEP. The IPTF is funded by a tax on petroleum products and all costs of assessment and remediation of petroleum contamination less a $10,000 deductible, up to a cap of $300,000, will be paid from the IPTF. Pursuant to changes the statute in 1996, sites are cleaned up on a prior approval basis. This means that a site will not be cleaned up until such time as its priority ranking score is reached. When a site's priority ranking is reached, the responsible party submits a plan to FDEP for approval. Upon approval of the plan the work is performed and is promptly paid from the IPTF. For low scoring sites this means that there may be a wait of many years before actual site clean-up begins. However, the facility at 307 Enterprise Street has received a score of 72. Currently, FDEP is approving assessment and clean-up for sites with a score higher than 65. This means that assessment of the extent of contamination and clean-up at this site is proceeding and will be funded now. The last documents in the City's file regarding the status of work at the site indicate that a initial assessment of the extent of contamination was completed in October 1996. I understand from discussions with Richard Corwin that a full Contamination Assessment Report _ (CAR) has been submitted, but I have not reviewed it at this time. The CAR should contain the soil and groundwater testing necessary to determine the vertical and horizontal extent of the petroleum contamination. Once FDEP approves the CAR, a remediation plan, including a cost estimate, will be submitted to FDEP for approval. There is a cap of $300,000 under the particular program for which this site is eligible. The vast majority of petroleum clean-up sites are completed for less than $300,000. However, a complete and accurate cost estimate for clean-up usually cannot be provided until the vertical and horizontal extent of petroleum contamination has been identified. It is possible that Universal Engineering, the Buyer's environmental consultant, has performed sufficient amount of testing in order to provide a cost estimate for the total site clean-up. However, such an estimate may have to wait until FDEP approval of the CAR is obtained. The Florida Statutes establishing the petroleum clean-up programs also provide a bar against a lawsuit by any party seeking to require clean-up of an eligible site in any manner other than that provided for under the program. This means that the risk of liability for contamination at the site is limited. The greatest risk would appear to be the possibility of cost at the site exceeding the $300,000 cap. A second concern which must be examined when dealing with contamination is whether or not the contamination would interfere with the use and enjoyment of the property. FDEP has identified over 18,000 contaminated sites in Florida and over 5,000 of these sites have -2- been cleaned up. It has been very rare for any of these sites to interfere with the planned use of the property. So long as there are no activities planned which would involve withdrawing groundwater from the_contaminated zone, disturbing contaminated soil, or changing the direction of groundwater flow, it is unlikely that the presence of contamination would interfere with the use of the property. This is essentially the position reflected in a letter to Richard Corwin from FDEP. Any specific plans for development or renovation of the property should be discussed with Orange County to make sure that there would be no concern regarding the planned use of the property. I would recommend that we ask the Buyer to have their consultant provide us with a cost estimate for the completion of all assessment and clean-up activities at the site. If such an estimate can be provided, the City may want to have its own environmental consultant review and verify the estimate. If the estimate exceeds the $300,000 cap, an escrow or other financial mechanism to provide for this cost should be requested from the Buyer. If a cost estimate cannot be provided at this time, the City could consider an escrow of some significant amount, (for example $50,000), to provide a cushion for any possible overrun beyond the $300,000 cap. Please let me know if you have any additional questions concerning this matter. /jh -3- 06/09/97 15:09 '04074234410 ERIC EREBILL 2 002/003 • Department of laismomagmar .} Environmental Protection Twin Towers Office Buidrng [ .- ! ; ; ,f�— Lawton Chiles 2600 Blair Stone Road i i.. •� Virginia B.Wetherell Governor Tallahassee, Florida 32399-2400 Secretary 1997 June 3 , 1997 UNIVE� ,^ (�iENCES Ms . Inga Logan Former Ron Allen Trucking 370 Enterprise Street Ocoee, Florida 34761-3002 RE: Former Ron Allen Trucking 370 Enterprise Street Ocoee, Orange County FDEP Facility ID# 489101299 Dear Ms. Logan: The contamination cleanup at this site has been approved for funding under the Department's Florida Petroleum Liability Insurance and Restoration Program (FPLIRP) for the December 13 , 1994 discharge. Review of our records has indicated that the FPLIRP required deductibles for the December 13, 1994 discharge has. not been•!collected--by. the: Department. Prior to the initiation of the preapproval program, FPLIRP deductibles were typically subtracted from the amount requested in the first reimbursement application following the discharge eligibility determination. In the preapproval program, the scope of work and the costs associated with performing that work are agreed upon before the work is performed. The consulting firm that performs the work is paid directly by the Department when the work is completed. Site owners and/or other responsible parties are, no longer asked to fund the cleanup effort and then wait for reimbursement. However, site owners and/or other responsible Parties are still responsible to pay the applicable deductible associated with each site's funding program. The FPLIRP deductible amount of $10, 000. 00 needs to be paid to the Department in order for this site to maintain its funding eligibility. Please remit the amount of the deductible with the enclosed invoice to . the.•following:" address.: VC.+C r\ ansan r�Manage ' bliAiir hr�gw NMamYAVIfstio<twiI • P+4ttse art iacyciadixiPr r•,:; F. dedtict.doo • ;:4�: 5/71'97 • 06/09/97 15:09 a4074"4410 ERIC KREBILL Z 003/003 _ Ms. Logan June 3 , 1997 • Page two Florida Department of Environmental Protection Division of Waste Management Bureau of Petroleum Storage Systems Mail Station 3070 Tallahassee, Florida 32399-3070 Please make sure to attach a brief letter with your check that clearly indicates that the remittance is for the FPLIRP deductible associated with Former Ron Allen Trucking, FDEP Facility ID* 489101299. Please copy me on the attached letter. If you should have any questions, please contact me at 904/488-3935 and at the letterhead address, Mail Station 4530. Sin erely, G R. Prime ironmental Specialist II Petroleum Cleanup' Section 3 Bureau of Petroleum Storage Systems /grp cc: m'lc Krebill, Universal Engineering Sciences Deborah Helle, FDEP Central District Office Judy Powell, Accountant I _ .protiodt,•'..'.:-oonsinit!cteritra•. r •�•_:.•l'��Y,'ry ..r•...C � '}..X1 �;t• ���.:b.,Viy��i�i r'�...'�.'}Y `�,.•_'•'i:...4, •.it ir..l.r. . .. pa{Mftisc/{l Grp i �I'-� .J•�� ..:C;•11. �,e�/�.�c�y.yam p�lftd •� - •.'. - `'.•' - J_